The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
FTA urges Natural Persons to promptly register for Corporate Tax before the end of March 2025. The Federal Tax Authority (FTA) has announced that natural persons conducting business activities in the UAE with a total turnover exceeding AED 1 million in a calendar year must register for Corporate Tax. The deadline for registration is March 31, 2025, for the 2024 calendar year. Failure to submit a Corporate Tax registration application within the FTA timelines may result in an administrative penalty of AED 10,000; however, the FTA (under a Cabinet approval and related public clarifications) may waive or refund this late-registration penalty for persons who meet certain conditions (for example, filing the tax return/annual declaration within seven months from the end of their first Tax Period). Natural persons can register through the EmaraTax platform, which provides digital tax services around the clock.
To ensure timely compliance and avoid penalties, many individuals rely on Corporate Tax Registration Services in Dubai for professional guidance and accurate filing. Natural persons can register through the EmaraTax platform, which provides digital tax services around the clock.
What is Corporate Tax for Natural Persons?
A ‘natural person’ under UAE tax legislation means any living human being (whether resident or non-resident). A natural person will be subject to Corporate Tax only if they conduct a Business or Business Activity in the UAE and meet the relevant thresholds (for example, aggregate turnover exceeding AED 1 million in a calendar year). Corporate tax applies to natural persons who derive income from such activities, treating them similarly to corporate entities. However, not all individuals are subject to corporate tax. Income such as wages, personal investment income (e.g., dividends, capital gains in certain circumstances) and real estate investment income are not treated as Business or Business Activities for Corporate Tax. However, if an individual also conducts a Business or Business Activity in the UAE and meets the relevant thresholds (e.g., aggregate turnover > AED 1,000,000 in a calendar year), they must register for Corporate Tax — even if they receive wages or passive investment income in addition to business income. The distinction lies like the income: active business income is taxable, while passive income typically falls outside the scope of corporate tax. This differentiation ensures that only those actively conducting business activities are required to comply with corporate tax regulations.
Who Must Register for Corporate Tax?
Natural persons must register for corporate tax if they conduct a business or business activity in the UAE and their turnover exceeds AED 1 million in a calendar year. This threshold ensures that smaller businesses and individuals with minimal income are not burdened by tax compliance. Key scenarios where a natural person becomes a taxable person include operating a sole establishment, engaging in freelance activities, or managing a family business. For example, a freelance consultant or a sole proprietor running a retail store with a turnover exceeding AED 1 million would be required to register for corporate tax. Understanding these criteria is essential for natural persons to determine their tax obligations and avoid penalties for non-compliance.
For detailed information on corporate tax registration, click here
Latest FTA Update on Corporate Tax Registration (March 2025 Deadline)
The Authority stated that if a natural person conducts a Business or Business Activity in the UAE during the 2024 calendar year and their Revenue exceeds AED 1 million by 31 July 2024, they are required to submit an application for Corporate Tax registration no later than 31 March 2025. Following this, they must file a Corporate Tax Return no later than 30 September 2025. Tax Registration applications that are not submitted by the specified deadline will be subject to an administrative penalty of AED 10,000.
Regarding the registration process, the FTA clarified that VAT or Excise Tax registrants can access their accounts directly through EmaraTax, the digital tax services platform that operates 24/7. Upon completing and obtaining approval for the corporate tax registration application, a corporate tax registration number will be issued.
Corporate Tax Registration Process for Natural Persons
How to Register?
- Visit the EmaraTax platform: https://www.emaratax.ae.
- Log In or Create an Account
- Select Corporate Tax Registration
- Provide Required Information
- Submit Supporting Documents
- Review and Submit
- Await Confirmation
By following these steps, natural persons can ensure compliance with the UAE’s Corporate Tax regulations.
Required Documents for Corporate Tax Registration
- Valid Emirates ID & Passport
- Trade License (if applicable)
- Bank Account Details
- VAT or Excise Tax Registration (if applicable)
Registration Approval Process
- FTA Reviews the Application: The Federal Tax Authority (FTA) will review the submitted application and documents.
- Issuance of Corporate Tax Registration Number (TRN) : Upon approval, the FTA will issue a Tax Registration Number (TRN) for corporate tax purposes.
Filing & Compliance Obligations After Registration
- Corporate Tax Return Filing Deadline: The first Corporate Tax return must be filed by 30 September 2025.
- Maintain Financial Records: Financial records must be maintained for a minimum of 7 years.
- Transfer Pricing Documentation (if applicable): Businesses engaged in transactions with related parties must comply with transfer pricing rules and maintain proper documentation.
Penalties for Non-Compliance
Late Registration:
- A fine of AED 10,000 for failing to register by the 31 March 2025 deadline.
Incorrect Tax Filing:
- Late filing of tax returns.
- Inaccurate or incomplete information in tax returns.
- Failure to maintain proper records or documentation.
- Additional penalties may apply for:
- Late filing of tax returns.
- Incorrect or incomplete information in tax returns.
- Failure to maintain proper records or documentation.
How Reyson Badger Can Help?
Reyson Badger is here to support you in the complexities of corporate tax registration and compliance in the UAE. Our team of experts can guide compliance and tax filing, ensuring that you meet all the necessary requirements. We also offer a hassle-free registration process via EmaraTax, making it easier for you to get started. Don't miss the deadline! Contact Reyson Badger today to ensure compliance and avoid any potential penalties.
